NEW YORK (Reuters) - The U.S. government
sued a New York tax lawyer on Wednesday for allegedly cheating the
Internal Revenue Service out of $130 million by engineering and
concealing from investigators dozens of illegal tax schemes on behalf of
clients.

In a civil lawsuit, U.S. authorities said Harold Levine earned
more than $5 million by implementing or participating in at least 90
illegal tax schemes, in which entities he set up improperly deducted
more than $515 million in bad debt losses.

The schemes took place while Levine was a partner at the law firm
Herrick Feinstein, according to the lawsuit, which was brought by
the office of Manhattan U.S. Attorney Preet Bharara.

Levine left Herrick Feinstein in 2012 to join Moritt Hock & Hamroff,
where he chairs the firm's tax practice.

"This action demonstrates that the IRS will pursue those who cheat
the tax system no matter how sophisticated or intricate the
transactions may be," said John Dalrymple, deputy commissioner for
services and enforcement of the IRS.

In a statement, Herrick Feinstein called Levine a "rogue partner who
concealed his activities from all other Herrick lawyers." The firm
said it demanded his resignation in 2012 after discovering the
activities alleged in the complaint and has been fully cooperating
with the IRS, in addition to filing a report with a legal
disciplinary committee and commencing its own proceeding against
him.